0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ %\/LVD9HQH.ODVHQZLWK9DOHULH0LOOHU-XVW$VVRFLDWHV
'UDZQIURP9HQH.ODVHQ/LVDZLWK9DOHULH0LOOHU$1HZ:HDYHRI3RZHU 3HRSOH 3ROLWLFV7KH$FWLRQ*XLGHIRU$GYRFDF\DQG&LWL]HQ3DUWLFLSDWLRQ 2NODKRPD&LW\:RUOG1HLJKERUV
8QGHUQHDWKTXHVWLRQVRILQMXVWLFHDQGLQHTXDOLW\LVWKHTXHVWLRQRISRZHU%HFDXVH SHRSOHRIWHQVHHSRZHUQHJDWLYHO\LWLVDVXEMHFWWKDWFDQEHXQFRPIRUWDEOHDQGWKXV PDQ\RIXVDUHUHOXFWDQWWRSUREH+RZHYHURXUWDVNLQDGYRFDF\LVWRLGHQWLI\WKH QHJDWLYHXVHVDQGG\QDPLFVRISRZHUDQGWUDQVIRUPWKHPWRFRQVWUXFWLYHHQGV)RUWKDW UHDVRQWKLVVHFWLRQEHJLQVZLWKVRPHFRQFHSWXDOLQIRUPDWLRQWKDWFDQKHOSWRFODULI\DQG GHHSHQXQGHUVWDQGLQJRIKRZSRZHUZRUNV*HWWLQJWRXQGHUVWDQGSRZHUPD\EHJLQDVD SHUVRQDOSURFHVVZKHUHWKHVLPSOHDFWRIWDONLQJDERXWLWRSHQO\FDQKHOSSHRSOHJUDSSOH ZLWKWKHFRQWURYHUV\DQGGLVFRPIRUWVXUURXQGLQJWKHWRSLF
'HILQLQJ3RZHU ´3RZHUFDQEHGHILQHGDVWKHGHJUHHRIFRQWURORYHUPDWHULDOKXPDQ LQWHOOHFWXDODQGILQDQFLDOUHVRXUFHVH[HUFLVHGE\GLIIHUHQWVHFWLRQVRIVRFLHW\ 7KHFRQWURORIWKHVHUHVRXUFHVEHFRPHVDVRXUFHRILQGLYLGXDODQGVRFLDOSRZHU 3RZHULVG\QDPLFDQGUHODWLRQDOUDWKHUWKDQDEVROXWH³LWLVH[HUFLVHGLQWKH VRFLDOHFRQRPLFDQGSROLWLFDOUHODWLRQVEHWZHHQLQGLYLGXDOVDQGJURXSV,WLVDOVR XQHTXDOO\GLVWULEXWHG²VRPHLQGLYLGXDOVDQGJURXSVKDYLQJJUHDWHUFRQWURORYHU WKHVRXUFHVRISRZHUDQGRWKHUVKDYLQJOLWWOHRUQRFRQWURO7KHH[WHQWRISRZHU RIDQLQGLYLGXDORUJURXSLVFRUUHODWHGWRKRZPDQ\GLIIHUHQWNLQGVRIUHVRXUFHV WKH\FDQDFFHVVDQGFRQWURO ´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ÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
´%XWQHLWKHUSRZHULGHRORJ\QRUWKHVWDWHDUHVWDWLFRUPRQROLWKLF7KHUH LVDFRQWLQXRXVSURFHVVRIUHVLVWDQFHDQGFKDOOHQJHE\WKHOHVVSRZHUIXODQG PDUJLQDOLVHGVHFWLRQVRIVRFLHW\UHVXOWLQJLQYDULRXVGHJUHHVRIFKDQJHLQWKH VWUXFWXUHRISRZHU ´:KHQWKHVHFKDOOHQJHVEHFRPHVWURQJDQGH[WHQVLYHHQRXJKWKH\FDQUHVXOWLQ WKHWRWDOWUDQVIRUPDWLRQRIDSRZHUVWUXFWXUHµ
0XOWLSOH'LPHQVLRQVRI3RZHU &HUWDLQSRZHUIXO SHRSOHDQGLQVWLWXWLRQV PDLQWDLQWKHLULQÁXHQFH E\FRQWUROOLQJZKRJHWV WRWKHGHFLVLRQPDNLQJ WDEOHDQGZKDWJHWV RQWKHDJHQGD7KHVH G\QDPLFVH[FOXGHDQG GHYDOXHWKHFRQFHUQVDQG UHSUHVHQWDWLRQRIRWKHU OHVVSRZHUIXOJURXSV 'LIÀFXOWLHVLQJDLQLQJ PHGLDFRYHUDJHFDQ IXUWKHULQKLELWYLVLELOLW\ DQGOHJLWLPDF\
0DQ\DGYRFDF\VWUDWHJLHVIRFXVRQDVLQJOHGLPHQVLRQRISRZHUXVXDOO\WKHPRVW YLVLEOH +RZHYHUZKDWPDNHVSROLWLFDOSRZHUHVSHFLDOO\GLIILFXOWWRDQDO\]HDQG FRQIURQWLVWKHIDFWWKDWLWGRHVQRWDOZD\VRSHUDWHLQYLVLEOHZD\V7KHUHDUHPXOWLSOH GLPHQVLRQVRISRZHUWKDWDUHFULWLFDOWRFRQVLGHUZKHQDQDO\]LQJDSUREOHPSODQQLQJDQ LQWHUYHQWLRQDQGRUHYDOXDWLQJLPSDFW7KHOHVVYLVLEOHGLPHQVLRQVDUHRIFRXUVHPRUH GLIILFXOWWRHQJDJHVLQFHSRZHUWHQGVWREHFRQFHDOHGDQGGLIIXVHHPEHGGHGLQFXOWXUDO DQGVRFLDOQRUPVDQGSUDFWLFHV
9LVLEOH3RZHU2EVHUYDEOH'HFLVLRQPDNLQJ 7KLVOHYHOLQFOXGHVWKHYLVLEOHDQGGHILQDEOHDVSHFWVRISROLWLFDOSRZHU²WKHIRUPDOUXOHV VWUXFWXUHVDXWKRULWLHVLQVWLWXWLRQVDQGSURFHGXUHVRIGHFLVLRQPDNLQJ([DPSOHVLQFOXGH HOHFWLRQVSROLWLFDOSDUWLHVODZVOHJLVODWXUHVEXGJHWVFRUSRUDWHSROLF\E\ODZVHWF
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
)URPWKH$VLD3DFLILF%XUHDXRI$GXOW(GXFDWLRQ·V$63%$( VWXG\XQGHUWDNHQZLWK )$2·V)UHHGRPIURP+XQJHUFDPSDLJQDVTXRWHGLQ:RPHQ·V(PSRZHUPHQWLQ6RXWK$VLD ²&RQFHSWVDQG3UDFWLFHV6ULODWKD%DWOLZDOD$63%$()$2'UDIW 6HH9HQH.ODVHQZLWK0LOOHU &RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
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·VVHQVHRIVHOIZRUWKDQGVHOINQRZOHGJH LWLQFOXGHVDQDELOLW\WRUHFRJQL]HLQGLYLGXDOGLIIHUHQFHVZKLOHUHVSHFWLQJRWKHUV 3RZHUZLWKLQLVWKHFDSDFLW\WRLPDJLQHDQGKDYHKRSHLWDIILUPVWKHFRPPRQ KXPDQVHDUFKIRUGLJQLW\DQGIXOILOOPHQW
,QYLVLEOH3RZHU6KDSLQJ0HDQLQJ 3UREDEO\WKHPRVWLQVLGLRXVRIWKHWKUHHGLPHQVLRQVRISRZHULQYLVLEOHSRZHUVKDSHV WKHSV\FKRORJLFDODQGLGHRORJLFDOERXQGDULHVRISDUWLFLSDWLRQ6LJQLILFDQWSUREOHPV DQGLVVXHVDUHQRWRQO\NHSWIURPWKHGHFLVLRQPDNLQJWDEOHEXWDOVRIURPWKHPLQGV DQGFRQVFLRXVQHVVRIWKHGLIIHUHQWSOD\HUVLQYROYHGHYHQWKRVHGLUHFWO\DIIHFWHGE\WKH SUREOHP%\LQIOXHQFLQJKRZLQGLYLGXDOVWKLQNDERXWWKHLUSODFHLQWKHZRUOGWKLVOHYHO RISRZHUVKDSHVSHRSOH·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·VVHQVHRIVHOISHUVRQDO FRQILGHQFHDQGUHODWLRQVKLSWRERG\DQGKHDOWK7KHSULYDWHUHDOPUHIHUVWRUHODWLRQVKLSV DQGUROHVLQIDPLOLHVDPRQJIULHQGVVH[XDOSDUWQHUVKLSVHWF:HDOVRLQFOXGHDVPLFUR SRZHUSRZHUUHODWLRQVKLSVRIDOLPLWHGVFRSH²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ÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
9LVLEOH 2EVHUYDEOH 'HFLVLRQ 0DNLQJ
+LGGHQ 6HWWLQJWKH 3ROLWLFDO $JHQGD
0LFURSRZHU3RZHUG\QDPLFV WKDWWDNHSODFHZLWKLQDQLQGLYLGXDO RUJDQL]DWLRQDQGFRPPXQLW\
0DFUR3RZHU3RZHUG\QDPLFVWKDW VKDSHQDWLRQDODQGLQWHUQDWLRQDODUHQDV DQGEURDGHUSXEOLFVSDFHV
:KDWGRHVUHSUHVHQWDWLRQORRNOLNHZLWKLQ RXURUJDQL]DWLRQVDQGVWUDWHJLHVZKRLV VSHDNLQJIRUZKRPDQGZKDWDUHFODVV UDFHJHQGHUDQGRWKHUGLIIHUHQFHV "
:KDWGRHVUHSUHVHQWDWLRQORRNOLNHLQ IRUPDOSROLWLFDOVSDFHVLQWHUQDWLRQDO ILQDQFLDOLQVWLWXWLRQVHWF"
:KRDUHWKHOHDGHUVDQGDUH WKHUHRSSRUWXQLWLHVIRUQHZOHDGHUVKLS" :KDWDUHWKHFRDOLWLRQG\QDPLFV"+RZ DUHGHFLVLRQVPDGH"+RZLVFRQIOLFW PDQDJHG"
+RZGRGHFLVLRQPDNHUVLQWHUDFWRUQRW ZLWKFLWL]HQV"
:LWKLQIDPLO\FRPPXQLW\RUJDQL]DWLRQV PRYHPHQWVZKDWDJHQGDVGRPLQDWH"
:KDWLQVWLWXWLRQVDQGRULQGLYLGXDOVKDYH DFFHVVWRWKHGHFLVLRQPDNLQJSURFHVVDQG KRZLVWKLVDFFHVVGHWHUPLQHG"
$UHJHQGHUFODVVHWKQLFLW\DQG RWKHUGLPHQVLRQVLQWHJUDWHGLQWRMXVWLFH VWUDWHJLHV" +RZLVLQIRUPDWLRQJDWKHUHGDQGXVHG" 7RZKDWH[WHQWLVSUDFWLFDONQRZOHGJH YDOXHGDORQJVLGHWHFKQLFDOH[SHUWLVH"
,QYLVLEOH 6KDSLQJ 0HDQLQJ
+RZDUHSXEOLFSROLF\GHFLVLRQVPDGH ZKRLVLQFOXGHGDQGZKRLVQRWLQWKH SURFHVV "
+RZDUHLQWHUQDOL]HGVRFLDOUDFHJHQGHU HWKQLFFODVVHWF UROHVDQGVWHUHRW\SHV SOD\HGRXWLQIDPLO\ZRUNDQG FRPPXQLW\" 'RSHRSOHWKLQNWKH\DUHWRR´VWXSLGµWR XQGHUVWDQGWKHSUREOHPVWKDWDIIHFWWKHP" 'RWKH\WKLQNWKH\KDYHQRUROHDQGQR ULJKWLQFKDQJLQJWKHLUVLWXDWLRQDQGWKDW WKH\·UHWREODPHIRUEHLQJSRRU"
+RZGRFLYLOVRFLHW\JURXSVSURMHFW WKHLUDJHQGDDQGJHWWKHLULVVXHVRQ GHFLVLRQPDNHUV·DJHQGDV"+RZDUHVSDFHV FUHDWHGWRQHJRWLDWHZLWKGHFLVLRQPDNHUV" +RZLVLQIRUPDWLRQXVHGDQGSURGXFHG" ,VWKHUHV\VWHPDWLFGLVFULPLQDWLRQ H[FOXVLRQZKHWKHURQEDVLVRIUDFHFODVV JHQGHUDJHHWF" +RZDUHSUREOHPV´VROGµWRWKHSXEOLF²DV QDWXUDOLQHYLWDEOH"$UHSHRSOHPDGHWR IHHOWKDWWKH\KDYHDQ\UROHLQWKHVROXWLRQ" :KDWLVWKHSDUDGLJPRIGHYHORSPHQWWKDW XQGHUOLHVGHFLVLRQPDNLQJ" 'HYHORSHGE\-XVW$VVRFLDWHV
,QWKLQNLQJDERXWWKHGLIIHUHQWOHYHOVRISRZHUJHQGHUWKHRU\DGGVDQRWKHULPSRUWDQW SHUVSHFWLYHE\UHPLQGLQJXVWKDWHDFKLQGLYLGXDO·VH[SHULHQFHRISRZHUDQG SRZHUOHVVQHVVZLOOEHGLIIHUHQWEDVHGRQJHQGHUUDFHFODVVDJHRUDQ\RWKHUQXPEHURI IDFWRUV)RUH[DPSOHDZRPDQSROLWLFLDQZKRDSSHDUVFRQILGHQWLQSXEOLFPD\DFFHSWD VXERUGLQDWHUROHLQKHUIDPLO\VKHPD\HYHQVXUYLYHDEXVHLQKHUSULYDWHUHODWLRQVKLSV &RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
ZKLOHNHHSLQJXSZLWKWKHGHPDQGVDQGLPDJHRIKHUSXEOLFGXWLHV:LWKWKHFKDOOHQJHRI $,'6SUHYHQWLRQZHVHHPDQ\VHHPLQJO\HGXFDWHGHPSRZHUHGZRPHQDQGPHQDURXQG WKHZRUOGIDLOWRWDNHPHDVXUHVWRSURWHFWWKHPVHOYHVDJDLQVWWKHGLVHDVHGHVSLWHWKH NQRZOHGJHDQGUHVRXUFHVWRGRVR$FNQRZOHGJLQJWKHVHOD\HUVDQGFRQWUDGLFWLRQVFDQ EHKHOSIXOLQXQGHUVWDQGLQJWKHWHQVLRQVJHQHUDWHGE\HPSRZHUPHQWIRUPDQ\SHRSOH &KDQJHVWUDWHJLHVWKDWIRFXVVROHO\RQWKHSXEOLFUHDOPPD\RYHUORRNFULWLFDOFKDOOHQJHV IDFLQJSHRSOHHVSHFLDOO\ZRPHQZKHQWKH\UHWXUQWRWKHLUKRPHVDQGIDPLOLHV
3RZHUDQG&RQIOLFW
3UDFWLWLRQHUVPXVW EHFRPHDZDUHRI WKHLURZQSRZHUWKHLU DVVXPSWLRQVDERXWSRZHU DQGWKHYDOXHVDQGJRDOV WKH\EULQJWRFRQÁLFW VLWXDWLRQV7KH\PXVW DOVRH[SOLFLWO\DVVHVVKRZ SRZHULVRSHUDWLQJLQWKH FRQÁLFWLYHUHODWLRQVKLSV HYDOXDWHWKHLURZQUROH DQGVHHNWKHDSSURSULDWH SURFHVVLQFRQÁLFWV RIVLJQLÀFDQWSRZHU LPEDODQFH
3RZHULVLQWHJUDOWRDOOFRQIOLFWSUDFWLWLRQHUVPXVWEHFRPHDZDUHRIWKHLU RZQSRZHUWKHLUDVVXPSWLRQVDERXWSRZHUDQGWKHYDOXHVDQGJRDOVWKH\EULQJ WRFRQIOLFWVLWXDWLRQV7KH\PXVWDOVRH[SOLFLWO\DVVHVVKRZSRZHULVRSHUDWLQJ LQWKHFRQIOLFWLYHUHODWLRQVKLSVHYDOXDWHWKHLURZQUROHDQGVHHNWKHDSSURSULDWH SURFHVVLQFRQIOLFWVRIVLJQLILFDQWSRZHULPEDODQFH«,QHDFKFRQIOLFWVLWXDWLRQ LWLVLPSRUWDQWWRDVNTXHVWLRQVVXFKDV:KDWDUHWKHVRXUFHVRISRZHUIRUWKRVH LQFRQIOLFW",VWKHUHDVLJQLILFDQWSRZHULPEDODQFH",VSRZHUEHLQJPLVXVHG RUDEXVHG"+RZFDQWKHOHVVSRZHUIXOEHFRPHPRUHHPSRZHUHG":KDW LQWHUYHQWLRQLVPRVWDSSURSULDWH" &DURO\Q6KURQN6KHQN0HGLDWLRQDQG)DFLOLWDWLRQ7UDLQLQJ0DQXDO$NURQ3$ 0HQQRQLWH&RQFLOLDWLRQ6HUYLFH
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
7KLVGLVFXVVLRQLVEDVHGRQ$GDP&XUOH·V)UDPHZRUNIRU0RYLQJWR3HDFHIXO5HODWLRQV LQ0DNLQJ3HDFH7DYLVWRFN-RKQ3DXO/HGHUDFK3UHSDULQJIRU3HDFH&RQIOLFW 7UDQVIRUPDWLRQ$FURVV&XOWXUHV6\UDFXVH83 &RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
%UHDNLQJWKH,FH$URXQG3RZHU ,GHQWLI\LQJ6RXUFHVDQG8VHVRI3RZHU 7KLVH[HUFLVHLVDTXLFNZD\WRLQWURGXFHWKHFRQFHSWRISRZHUDQGHQFRXUDJHSHRSOHWR UHFRJQL]HWKHLURZQSRZHUDQGSRWHQWLDO,WVKRXOGRQO\WDNHEHWZHHQ²PLQXWHV 6KRZRUKDQGRXWFRSLHVRIWKHLOOXVWUDWLRQVEHORZDQGWKHQDVNSDUWLFLSDQWVWR ,GHQWLI\DQGGHVFULEHWKHNLQGRISRZHUGHSLFWHGLQHDFKRIWKHIRXUGUDZLQJV ([SODLQWKHLPSDFWRIWKLVNLQGRISRZHURQSHRSOH·VSDUWLFLSDWLRQLQ GHYHORSPHQW ([SODLQWKHLPSDFWRIWKLVNLQGRISRZHURQSROLFLHVDQGSURJUDPWRDGGUHVV SRYHUW\ 1H[WGLVFXVVWKHIROORZLQJWZRTXHVWLRQV :KDWDUHWKHPDLQVRXUFHVRISRZHU" :KDWDUH\RXUSRWHQWLDOVRXUFHVRISRZHUDVDFLWL]HQ"
)URP9HQH.ODVHQZLWK0LOOHU $1HZ:HDYHRI3RZHU3HRSOH 3ROLWLFV2NODKRPD :RUOG1HLJKERUV &RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
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
)URP9HQH.ODVHQZLWK0LOOHU $1HZ:HDYHRI3RZHU3HRSOH 3ROLWLFV2NODKRPD :RUOG1HLJKERUV &RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
:KDWGRHVWKHH[HUFLVH UHYHDODERXWXVDV DJURXS":KDWDUH WKHGLIIHUHQFHVDQG VLPLODULWLHVLQUHODWLRQ WRWKHGRPLQDQWSRZHU" +RZFDQWKDWLQÁXHQFH RXUZRUN"
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·V LQQHUFLUFOH
'LVFXVVLRQ 2QFHHDFKSHUVRQKDVFRPSOHWHGWKHLUIORZHUWKHIDFLOLWDWRUFDQOHDGDGLVFXVVLRQDURXQG TXHVWLRQVVXFKDV +RZPDQ\RI\RXULQGLYLGXDOFKDUDFWHULVWLFVDUHGLIIHUHQWIURPWKHGRPLQDQW LGHQWLW\":KLFKFKDUDFWHULVWLFVFDQQRWEHFKDQJHG":KDWGRHVWKLVVD\DERXW \RXURZQSRZHURUSRWHQWLDOIRUSRZHU" :KDWGRHVWKHH[HUFLVHUHYHDODERXWXVDVDJURXS":KDWDUHWKHGLIIHUHQFHV DQGVLPLODULWLHVLQUHODWLRQWRWKHGRPLQDQWSRZHU"+RZFDQWKDWLQIOXHQFHRXU ZRUN" :KDWGRHVWKLVH[HUFLVHWHOOXVDERXWLGHQWLW\DQGSRZHUPRUHEURDGO\"
&RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
3RZHU3ROLWLFDO3DUWLFLSDWLRQDQG6RFLDO&KDQJH 8VLQJWKLVWRRO7KLVWRROZLOOKHOSSDUWLFLSDQWVGHHSHQWKHLUXQGHUVWDQGLQJ RISRZHUDVDWKUHHGLPHQVLRQDOG\QDPLFSURFHVV,WDVNVSHRSOHWRWKLQN DERXWKRZWKHYDULRXVGLPHQVLRQVRISRZHULPSDFWWKHLUZRUNDQGWKHNLQGVRI VWUDWHJLHVWKDWFDQLQIOXHQFHWKRVHGLPHQVLRQV
,QYLVLEOHDQGKLGGHQ PHFKDQLVPVRISRZHU VKDSHWKHHIIHFWLYHQHVV RIFLWL]HQSDUWLFLSDWLRQ 7KHVHPHFKDQLVPVFDQ OHDGWRSRZHUOHVVQHVV FRQÁLFWPDUJLQDOL]DWLRQ DQGUHVLVWDQFH'LIIHUHQW VWUDWHJLHVDUHUHTXLUHGWR FRXQWHUWKHVHPHFKDQLVPV VRWKDWSROLWLFDO SDUWLFLSDWLRQFDQEHPRUH LQFOXVLYHDQGVRSHRSOH FDQH[HUFLVHWKHLUULJKWV DQGUHVSRQVLELOLWLHVDV FLWL]HQV
%HIRUHVWDUWLQJWKHH[HUFLVHEHVXUHWKDWSHRSOHDUHIDPLOLDUZLWKWKHGLVWLQFWLRQV EHWZHHQYLVLEOHKLGGHQDQGLQYLVLEOHSRZHU
([DPSOHV
5HVSRQVHV6WUDWHJLHV
9LVLEOH +LGGHQ ,QYLVLEOH 7KLVH[HUFLVHLVEHVWGRQHZLWKVPDOOJURXSV*LYHHDFKJURXSIOLSFKDUWSDSHUDQG PDUNHUVDQGXVLQJWKHPDWUL[EHORZDVDJXLGHDVNWKHPWRUHVSRQGWRWKHIROORZLQJ TXHVWLRQV :KDWDUHVRPHH[DPSOHVRIYLVLEOHKLGGHQDQGLQYLVLEOHSRZHUWKDW\RXKDYH VHHQLQ\RXUZRUN"
$GDSWHGIURP9HQH.ODVHQZLWK0LOOHU $1HZ:HDYHRI3RZHU3HRSOH 3ROLWLFV 2NODKRPD:RUOG1HLJKERUV &RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
-VYL_HTWSL! 9LVLEOH0DNLQJ (QIRUFLQJWKH 5XOHV )RUPDOLQVWLWXWLRQV RIILFLDOV 3UHVLGHQW3ULPH0LQLVWHUOHJLVODWXUH FRXUWVPLQLVWULHVSROLFHPLOLWDU\HWF 8QLWHG1DWLRQV,0):RUOG%DQN 3ULYDWHVHFWRULQGXVWU\PXOWLQDWLRQDO FRUSRUDWLRQVFKDPEHURIFRPPHUFH EXVLQHVVHVHWF
([DPSOHV %LDVHGODZVSROLFLHVHJKHDOWKFDUH SROLFLHVWKDWGRQRWDGGUHVVZRPHQ·V UHSURGXFWLYHQHHGV 'HFLVLRQPDNLQJVWUXFWXUHV SDUOLDPHQWVFRXUWVHWF DUH FORVHGWRSHRSOH·VYRLFHVDQG XQUHSUHVHQWDWLYH
,QVWUXPHQWV3ROLFLHVODZVFRQVWLWXWLRQV 7KHSULQFLSOHRI¶HTXDOLW\·PD\H[LVW EXGJHWVUHJXODWLRQVFRQYHQWLRQV LQODZEXWSDUOLDPHQWVDQGFRXUWVDUH LPSOHPHQWLQJPHFKDQLVPVHWF QRWIDLUO\UHSUHVHQWDWLYHRIZRPHQ DQGPLQRULWLHV +LGGHQ6HWWLQJWKH$JHQGD
/REE\LQJ PRQLWRULQJ 1HJRWLDWLRQ OLWLJDWLRQ 3XEOLFHGXFDWLRQ PHGLD 3ROLF\UHVHDUFKSURSRVDOV 6KDGRZUHSRUWV 0DUFKHV GHPRQVWUDWLRQV 9RWLQJ UXQQLQJIRURIILFH 0RGHOLQJLQQRYDWLRQV &ROODERUDWLRQ(WF
/HDGHUVDUHODEHOHGWURXEOHPDNHUVRU XQUHSUHVHQWDWLYH
%XLOGLQJDFWLYHFRQVWLWXHQFLHV DURXQGFRPPRQFRQFHUQV 6WUHQJWKHQLQJRUJDQL]DWLRQV FRDOLWLRQVPRYHPHQWVDQG DFFRXQWDEOHOHDGHUV 0RELOL]LQJDURXQGVKDUHG DJHQGDVGHPRQVWUDWLQJFORXW WKURXJKGLUHFWDFWLRQ 3DUWLFLSDWRU\UHVHDUFKDQG GLVVHPLQDWLRQRILQIRUPDWLRQWKDW OHJLWLPL]HVWKHLVVXHVRIH[FOXGHG JURXSV (WF
$PRQJPDUJLQDOJURXSVVRFLDOL]DWLRQ LQWHUQDOL]HVIHHOLQJVRIVXERUGLQDWLRQ DSDWK\VHOIEODPHSRZHUOHVVQHVV XQZRUWKLQHVVKRVWLOLW\DQJHUHWF
(GXFDWLRQIRUFRQILGHQFH FLWL]HQVKLSFROODERUDWLRQ SROLWLFDODZDUHQHVV DQDO\VLV XVLQJDOWHUQDWLYHPHGLD 6KDULQJVWRULHVVSHDNLQJRXWDQG FRQQHFWLQJZLWKRWKHUVDIILUPLQJ UHVLVWDQFHOLQNLQJFRQFUHWH SUREOHPVWRULJKWV ,QYHVWLJDWLRQDFWLRQUHVHDUFK DQGGLVVHPLQDWLRQRIFRQFHDOHG LQIRUPDWLRQ (WF
([FOXVLRQ GHOHJLWLPL]DWLRQ&HUWDLQ JURXSVDQGWKHLULVVXHV H[FOXGHGIURP ,VVXHVVXFKDVGRPHVWLFYLROHQFH GHFLVLRQPDNLQJE\VRFLHW\·VDQGSROLWLFV· FKLOGFDUHDQGRWKHUVDUHUHOHJDWHGWR XQZULWWHQUXOHVSUDFWLFHVDQGLQVWLWXWLRQ WKHSULYDWHUHDOPRIWKHIDPLO\DQG WKHUHIRUHQRWFRQVLGHUHGZRUWK\RI 7KH\DQGWKHLUJULHYDQFHVDUHPDGH SXEOLFDFWLRQ LQYLVLEOHE\LQWLPLGDWLRQPLVLQIRUPDWLRQ DQGFRRSWDWLRQ 7KHPHGLDGRHVQRWFRQVLGHUWKHVH JURXSV·LVVXHVWREHPDLQVWUHDPRU 2IWHQIRUPDOLQVWLWXWLRQVZLWKYLVLEOH QHZVZRUWK\ SRZHUDOVRH[HUFLVHKLGGHQSRZHU ,QYLVLEOH6KDSLQJ0HDQLQJ9DOXHV :KDWҋVҊ1RUPDOҋ
5HVSRQVHV6WUDWHJLHV
6RFLDOL]DWLRQ FRQWURORILQIRUPDWLRQ 3URFHVVHVSUDFWLFHVFXOWXUDOQRUPVDQG FXVWRPVVKDSHSHRSOH·VXQGHUVWDQGLQJRI &UXFLDOLQIRUPDWLRQLVFRQFHDOHGRU WKHLUQHHGVUROHVSRVVLELOLWLHVDQGDFWLRQV LQDFFHVVLEOH LQZD\VWKDWGHWHUHIIHFWLYHDFWLRQIRU FKDQJH 3RRUIDUPHUVEODPHWKHPVHOYHV IRUSRYHUW\GHVSLWHXQHTXDODFFHVV WRJOREDOPDUNHWVIRUIDLUO\SULFHG JRRGV
&RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
)DFWRUVRI([FOXVLRQ6XERUGLQDWLRQ 3ULYLOHJH 8VLQJWKLVWRRO7KLVWRROKDVWZRSDUWV)LUVWLWH[DPLQHVYDULRXVIDFWRUV WKDWLPSDFWZKRKDVPRUHDQGZKRKDVOHVVSRZHULQVRFLHW\%XLOGLQJRQWKH DQDO\VLVRIKRZIDFWRUVRIH[FOXVLRQRSHUDWHWKHVHFRQGSDUWRIWKHWRROFDQRIIHU LQVLJKWLQWRWKHDWWLWXGHVDQGEHKDYLRUVWKDWSHUSHWXDWHLPEDODQFHVRISRZHUDQG H[FOXVLRQ,WVHUYHVWR SUREHDVVXPSWLRQVDERXWLQHTXDOLW\DQGZKDWGHWHUPLQHVGRPLQDQFHRU VXERUGLQDWLRQ
3HRSOHWKHQRIWHQMXVWLI\ SUHMXGLFHDV´QDWXUDOµ ZKHQLW·VUHDOO\WKHVRFLDO PHDQLQJZHJLYHWR ELRORJLFDOIDFWV³OLNH EHLQJDPDQRUZRPDQ RUKDYLQJDSDUWLFXODU VNLQFRORU²WKDWGHÀQHV LQHTXDOLW\
UHIOHFWRQKRZSHRSOHDUHVRFLDOL]HGWRDFFHSWWKHLUVWDWXVDQGKRZSHRSOH UHVLVWWKHLUVXERUGLQDWHUROH KHOSXQGHUVWDQGWKHSV\FKRORJLFDODQGFXOWXUDOFKDOOHQJHVRIRUJDQL]LQJ FLWL]HQSDUWLFLSDWLRQDQGZRUNIRUFKDQJH 7LPHHVWLPDWHGôKRXUV 'LVFXVVWKHIROORZLQJH[FHUSWRQIDFWRUVRIH[FOXVLRQZLWKSDUWLFLSDQWV%UHDN LQWRVPDOOJURXSVDQGDVNHDFKJURXSWRVHOHFWIRXU¶IDFWRUVRIH[FOXVLRQ·)RUHDFK RQHWKH\VKRXOGGLVFXVVH[DPSOHVIURPWKHLUZRUNZKHUHWKH\KDYHVHHQWKDWW\SHRI GLVFULPLQDWLRQDQGKRZLWLVSHUSHWXDWHG :KDWGHWHUPLQHVZKRKDVPRUHSRZHUDQGZKRKDVOHVVSRZHULQVRFLHW\DQG LQGHYHORSPHQWSURFHVVHV"3K\VLFDOWUDLWVDQGVRFLDOFLUFXPVWDQFHVWKDWDUH LQKHULWHGDWELUWKRIWHQGHWHUPLQHDQLQGLYLGXDO·VRSSRUWXQLWLHVFKRLFHVDQG HYHQVHQVHRIVHOI7KLVKDSSHQVQRWEHFDXVHWKHVHFKDUDFWHULVWLFVDUHLQERUQEXW UDWKHUEHFDXVHRIQHJDWLYHYDOXHMXGJPHQWVDWWULEXWHGWRWKHP3HRSOHWKHQRIWHQ MXVWLI\SUHMXGLFHDV´QDWXUDOµZKHQLW·VUHDOO\WKHVRFLDOPHDQLQJZHJLYHWR ELRORJLFDOIDFWV³OLNHEHLQJDPDQRUZRPDQRUKDYLQJDSDUWLFXODUVNLQFRORU ²WKDWGHILQHVLQHTXDOLW\$OWKRXJKDIHZSHRSOHRYHUFRPHWKHVRFLDOEDUULHUVRI WKHLUGLVDGYDQWDJHPRVWGRQRWXQOHVVWKHUHLVDGUDPDWLFFKDQJHLQVRFLHW\ 2YHUWKHODVWWZHQW\\HDUVDQXPEHURIVRFLDOPRYHPHQWVKDYHIRFXVHGRQ ILJKWLQJSUHMXGLFHDQGEDUULHUVGHULYHGIURPSHRSOH·VLGHQWLW\EDVHGRQJHQGHU UDFHDJHHWKQLFLW\UHOLJLRQDPRQJRWKHUV7KHVHIDFWRUVFRPELQHLQGLIIHUHQW ZD\VLQGLIIHUHQWFRQWH[WVWRGHWHUPLQHZKRPDNHVGHFLVLRQVDQGZKRKDVDFFHVV WRUHVRXUFHV
)URP9HQH.ODVHQZLWK0LOOHU $1HZ:HDYHRI3RZHU3HRSOH 3ROLWLFV2NODKRPD :RUOG1HLJKERUV &RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
1DWXUHELRORJ\ YVQXUWXUHVRFLDOL]DWLRQ LVWKHVXEMHFWRIPXFKUHVHDUFKDQG GHEDWH%XWUHJDUGOHVVRIZKHWKHUVRPHRQH·VEHKDYLRUKDVJHQHWLFURRWVRULV SULPDULO\DIXQFWLRQRIVRFLDOL]DWLRQVRFLDOMXVWLFHDGYRFDWHVDUHFRQFHUQHG DERXWLQHTXDOLW\3URPRWLQJDFFHSWDQFHRIGLYHUVLW\LVDIXQGDPHQWDOSULQFLSOHRI WKLVNLQGRIDGYRFDF\)LQGLQJFRPPRQJURXQGZKLOHUHFRJQL]LQJGLIIHUHQFHLV FULWLFDOWRKHDOWK\VWDEOHVRFLHWLHV :KDW,V'LVFULPLQDWLRQ"
5HJDUGOHVVRIZKHWKHU VRPHRQH·VEHKDYLRU KDVJHQHWLFURRWVRULV SULPDULO\DIXQFWLRQ RIVRFLDOL]DWLRQVRFLDO MXVWLFHDGYRFDWHV DUHFRQFHUQHGDERXW LQHTXDOLW\3URPRWLQJ DFFHSWDQFHRIGLYHUVLW\LV DIXQGDPHQWDOSULQFLSOH RIWKLVNLQGRIDGYRFDF\ )LQGLQJFRPPRQJURXQG ZKLOHUHFRJQL]LQJ GLIIHUHQFHLVFULWLFDOWR KHDOWK\VWDEOHVRFLHWLHV
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
&RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
5HOLJLRQ 5HOLJLRQUHIHUVWREHOLHIVDQGZRUVKLSRIDWUDQVFHQGHQWRUVXSHUQDWXUDOEHLQJV 5HOLJLRQVXVXDOO\HPERG\DYLVLRQRIULJKWDQGZURQJEHVWRZHGE\WKHKLJKHVW PRUDODXWKRULW\ 6RFLRHFRQRPLFVWDWXVFODVV 7KLVWHUPKDVPXOWLSOHPHDQLQJV,WJHQHUDOO\UHIHUVWRDSHUVRQ·VSRVLWLRQ LQVRFLHW\DVGHWHUPLQHGE\DFRPELQDWLRQRIIDFWRUVVXFKDVHGXFDWLRQDQG HFRQRPLFPHDQV6RFLRHFRQRPLFVWDWXVLVRQHRIWKHPRVWLPSRUWDQWVRXUFHVRI GLVDGYDQWDJHRUSULYLOHJH $JH 7KHQXPEHURIFKURQRORJLFDO\HDUVRQHKDVOLYHG$JHLVDFRPPRQVRXUFH RIGLVFULPLQDWLRQWKDWDIIHFWVPHQDQGZRPHQGLIIHUHQWO\DQGLVZHLJKWHG GLIIHUHQWO\LQGLIIHUHQWFRQWH[WV)RUH[DPSOHLQ$IULFDDQG6RXWK$VLDDJH DIIRUGVDZRPDQPRUHVWDWXVZKLOHLQSDUWVRIWKH:HVWROGHUZRPHQKDYHOHVV RUQRVWDWXV 6H[XDORULHQWDWLRQ 7KHWHUPUHIHUVWRDSHUVRQ·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·VUHVRXUFHVDQGWKH JOREDOVRXWK
&RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
'LVDELOLW\ 5HIHUVWRDSK\VLFDORUPHQWDOFRQGLWLRQWKDWPDNHVDSHUVRQGLIIHUHQWWKDQZKDW LVFRQVLGHUHGQRUPDO'LVDELOLWLHVRIWHQPDNHDSHUVRQRSHUDWHDWDGLIIHUHQW SDFHDQGUHTXLUHVRPHDVVLVWDQFHWRDWWDLQ´QRUPDOµDFWLYLW\6RFLHWLHVDUHRIWHQ DEXVLYHWRSHRSOHZLWKGLVDELOLWLHV
,QYLVLEOHPHFKDQLVPV RISRZHURYHUFDQ VRFLDOL]HSHRSOHLQWR DFFHSWLQJDQLQIHULRUUROH LQVRFLHW\DVLVWKHFDVH ZLWKZRPHQLQPDQ\ VRFLHWLHV6LPXOWDQHRXVO\ VRFLDOL]DWLRQDIÀUPV IHHOLQJVRIHQWLWOHPHQW DPRQJGRPLQDQWJURXSV
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
&RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
)URP9HQH.ODVHQZLWK0LOOHU $1HZ:HDYHRI3RZHU3HRSOH 3ROLWLFV2NODKRPD :RUOG1HLJKERUV
&RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
*HQGHU$QDO\VLV'LYLVLRQRI/DERU 8VLQJWKLVWRRO7KLVWRROKHOSVWRGHHSHQWKHDQDO\VLVRIKRZZRPHQDQG PHQPD\EHLPSDFWHGGLIIHUHQWO\ERWKE\DSUREOHPDQGDSURSRVHGVROXWLRQ RUSURJUDP7KHVHDUHLPSRUWDQWFRQVLGHUDWLRQVIRUSURMHFWGHVLJQDQGIRU DVVHVVLQJLPSDFW 7LPHHVWLPDWHGôKRXUV
:RUNFDQEHGLYLGHG LQWRWKUHHFDWHJRULHV SURGXFWLYHUHSURGXFWLYH DQGFRPPXQLW\ZRUN /DFNRIUHFRJQLWLRQRI FHUWDLQFDWHJRULHVRI ZRUNGLVWRUWVSROLF\ SODQQLQJEHFDXVHPXFK RIZRPHQ·VODERULVQRW FRXQWHG
'LVFXVVZLWKSDUWLFLSDQWVVRPHRIWKHNH\JHQGHUFRQFHSWVLQWKHER[RQWKHQH[WSDJH DQGKRZWKH\DUHUHOHYDQWIRUWKHRUJDQL]DWLRQ·VSODQQLQJDQGSURJUDPV7KLVWRROLV LQWHQGHGWRVSHFLILFDOO\DQDO\]HWKHJHQGHUGLYLVLRQRIODERU%RWKPHQDQGZRPHQ ZRUNEXWWKH\WHQGWRGRGLIIHUHQWZRUNDQGPHQ·VZRUNLVXVXDOO\YDOXHGPRUHWKDQ ZRPHQ·V :RUNFDQEHGLYLGHGLQWRWKUHHFDWHJRULHVSURGXFWLYHUHSURGXFWLYHDQGFRPPXQLW\ ZRUN3URGXFWLYHZRUNLVWKHSURGXFWLRQRIJRRGVDQGVHUYLFHVIRUFRQVXPSWLRQ DQGWUDGH,WQRUPDOO\HDUQVPRQH\IRUWKHSHUVRQZKRGRHVLW0HQWHQGWRGRPRUH SURGXFWLYHZRUNWKDQZRPHQ5HSURGXFWLYHZRUNLQYROYHVWKHFDUHDQGPDLQWHQDQFHRI WKHKRXVHKROG,WLQFOXGHVFKLOGFDUHFRRNLQJZDWHUDQGIXHOFROOHFWLRQVKRSSLQJDQG IDPLO\KHDOWKFDUH$OWKRXJKLWLVFUXFLDOIRUKXPDQVXUYLYDODQGRIWHQLQYROYHVPDQ\ KRXUVRIODERULWLVXVXDOO\QRWFRQVLGHUHG´UHDOµZRUN,WWKXVLVJLYHQOLWWOHIRUPDO RUPRQHWDU\YDOXH,WLVGRQHPDLQO\E\ZRPHQ&RPPXQLW\ZRUNLVWKHFROOHFWLYH RUJDQL]DWLRQRIVRFLDOHYHQWVDQGVHUYLFHVFRPPXQLW\SURMHFWVFHUHPRQLHVDQGVLPLODU HYHQWV,WLVGRQHE\ERWKZRPHQDQGPHQDOWKRXJKWKH\XVXDOO\SHUIRUPGLIIHUHQWWDVNV /DFNRIUHFRJQLWLRQRIFHUWDLQFDWHJRULHVRIZRUNGLVWRUWVSROLF\SODQQLQJEHFDXVHPXFK RIZRPHQ·VODERULVQRWFRXQWHG 1H[WDVNSDUWLFLSDQWVWRGLVFXVVWKHIROORZLQJTXHVWLRQV :KDWGRZRPHQDQGJLUOVGRSDLGDQGXQSDLG " :KDWGRPHQDQGER\VGRSDLGDQGXQSDLG " :KDWDUHWKHLPSOLFDWLRQVRIWKLVGLYLVLRQRIODERU" +RZDUHZRPHQDQGPHQLPSDFWHGGLIIHUHQWO\E\WKHSUREOHP"+RZZLOOWKH\ EHLPSDFWHGE\WKHSURSRVHGVROXWLRQSURJUDP" :LOOWKHSURSRVHGVROXWLRQRUSURJUDPUHLQIRUFHRUFKDOOHQJHWKHH[LVWLQJ GLYLVLRQRIODERU"
&RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
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·VRZQ FRPPXQLW\LVLPSRUWDQWIRUSROLWLFDODZDUHQHVV 7LPHHVWLPDWHGôKRXUV
$GDSWHGIURP0DUFK6P\WKDQG0XNKRSDGK\D\$*XLGHWR*HQGHU$QDO\VLV)UDPHZRUNV 2[IDP3XEOLVKLQJ2[IRUG &RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
'\QDPLFVRI3RZHU,QFOXVLRQDQG([FOXVLRQ
,QHTXDOLW\LVDWWKHKHDUWRILQMXVWLFHWKXVDQLPSRUWDQWSLHFHRISURPRWLQJMXVWLFHKDV WRGRZLWKHTXLWDEOHDFFHVVDQGFRQWURORYHUJRRGVDQGUHVRXUFHV)RUH[DPSOHSDVW DJULFXOWXUDOVXSSRUWSURMHFWVWDUJHWLQJZRPHQIRXQGWKDWZKLOHWKH\LQFUHDVHGZRPHQ·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
&RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV
0D\
6HFWRU:LGH,QQRYDWLRQ3ODQQLQJ4XLFNVKHHW %\0LFKDHO&*LOEHUW
'RPLQLTXH)RUD\GHVFULEHVDPDWUL[WKDWLVYHU\XVHIXOLQXQGHUVWDQGLQJZKHUH LQQRYDWLRQFRPHVIURPDQGKRZLWFDQEHVXSSRUWHGLQWKHFRQWH[WRIDFRPPXQLW\RI SUDFWLFH7KDWPDWUL[FDQDQGVKRXOGEHDSSOLHGWRWKHYDULHGVXEVHFWRUVRIVRFLDOVHUYLFH DQGVRFLDOFKDQJHZRUN7KLV4XLFNVKHHWSURYLGHVDEULHILQWURGXFWLRQWRWKLVPDWUL[DV LW·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·WHYHQH[LVWRUDUHLQQDVFHQWIRUP 7KHUHDUHRIFRXUVHV\QHUJLHVWRIRXQGEHWZHHQWKHWKUHHPRGHOVRILQQRYDWLRQEXWWKDW LVDWRSLFIRUDQRWKHU4XLFNVKHHW &RS\ULJKW0D\1RQSURÀW2QOLQH1HZV 7KH*LOEHUW&HQWHU$OO5LJKWV5HVHUYHG &RUSRUDWH/LFHQVH*UDQWHGWR'DUVKDQD3DWHOGSDWHO#MXVWDVVRFLDWHVRUJ -XVW$VVRFLDWHV